Replication data for: Small Steps for Workers, a Giant Leap for Productivity

Principal Investigator(s): View help for Principal Investigator(s) Igal Hendel; Yossi Spiegel

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Project Citation:

Hendel, Igal, and Spiegel, Yossi. Replication data for: Small Steps for Workers, a Giant Leap for Productivity. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113881V1

Project Description

Summary: We document the evolution of productivity in a steel mini mill with fixed capital, producing an unchanged product with Leontief technology working 24/7. Despite—almost—unchanged production conditions, output doubled within the sample period (12 years). We decompose the gains into downtime reductions, more rounds of production per time, and more output per run. After attributing productivity gains to investment and an incentive plan, we are left with a large unexplained component. Learning by experimentation, or tweaking, seems to be behind the continual and gradual process of productivity growth. The findings suggest that capacity is not well defined, even in batch-oriented manufacturing.

Scope of Project

JEL Classification:
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
      G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
      J24 Human Capital; Skills; Occupational Choice; Labor Productivity
      L23 Organization of Production
      L61 Metals and Metal Products; Cement; Glass; Ceramics

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Published Versions

V1 [2019-10-12]

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DDI 2.5

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